City reduces service debts to N$200m

THE Windhoek Municipality has managed to reduce the amount owed to it for basic services by N$20 million since it introduced a new credit control policy in March.

The City said this week that the outstanding debt now stood at around N$200 million. Windhoek CEO Niilo Taapopi said the City’s residents could not be expected to shoulder the burden of the socio-economic challenges the City was facing.The most significant amendment to the old policy is that the provisions will be applied to all sections of the community – minors, Government accounts, business, pensioners and welfare cases – without discrimination or concessions.Debtors are now also being referred to independent debt collection agencies before legal action is instituted.Should services be disconnected, one third of the total outstanding amount should be paid upfront before a reconnection would be made.A payment plan is then to be worked out for the remaining balance.Services will be disconnected again if the payment plan is not met and reconnection will be done pending full settlement of the outstanding bill.The City has faced criticism that its new credit control policy is too stringent, but Taapopi says in the long run it could result in controlling the increase in tariffs and levies if payment habits are improved.”It should be recognised that as a service rendering institution, the City of Windhoek, like other local authorities, operations on a cost-recovery basis.This means that clients must pay for the services provided.It remains imperative that the City recovers these monies from the consumers in one way or the other,” Taapopi told the media.The City said the population growth of 4,4 per cent was putting a tremendous strain on service provision and the demand for basic services for which the majority of the poor were unable to pay.”We, including central and regional Government, must all accept the challenge and investigate sustainable solutions, political, financial and economic,” Taapopi told the media.In terms of the resolutions taken by Council, new services will only be provided to clients who are not already indebted to the City.No new service will be connected on a property on which there is an outstanding bill.This measure may affect landlords who rent out their properties to new tenants while the previous tenants have not paid their municipal bills.The City says it had been doing its part in trying to help residents manage their consumption, by installing pre-paid electricity meters free of charge for the elderly and welfare cases.Strategic Executive for Finance Roger Gertze also announced this week that an electronic board would be installed at the City’s headquarters displaying the current debt situation.Windhoek CEO Niilo Taapopi said the City’s residents could not be expected to shoulder the burden of the socio-economic challenges the City was facing.The most significant amendment to the old policy is that the provisions will be applied to all sections of the community – minors, Government accounts, business, pensioners and welfare cases – without discrimination or concessions.Debtors are now also being referred to independent debt collection agencies before legal action is instituted.Should services be disconnected, one third of the total outstanding amount should be paid upfront before a reconnection would be made.A payment plan is then to be worked out for the remaining balance.Services will be disconnected again if the payment plan is not met and reconnection will be done pending full settlement of the outstanding bill.The City has faced criticism that its new credit control policy is too stringent, but Taapopi says in the long run it could result in controlling the increase in tariffs and levies if payment habits are improved.”It should be recognised that as a service rendering institution, the City of Windhoek, like other local authorities, operations on a cost-recovery basis.This means that clients must pay for the services provided.It remains imperative that the City recovers these monies from the consumers in one way or the other,” Taapopi told the media.The City said the population growth of 4,4 per cent was putting a tremendous strain on service provision and the demand for basic services for which the majority of the poor were unable to pay.”We, including central and regional Government, must all accept the challenge and investigate sustainable solutions, political, financial and economic,” Taapopi told the media.In terms of the resolutions taken by Council, new services will only be provided to clients who are not already indebted to the City.No new service will be connected on a property on which there is an outstanding bill.This measure may affect landlords who rent out their properties to new tenants while the previous tenants have not paid their municipal bills.The City says it had been doing its part in trying to help residents manage their consumption, by installing pre-paid electricity meters free of charge for the elderly and welfare cases.Strategic Executive for Finance Roger Gertze also announced this week that an electronic board would be installed at the City’s headquarters displaying the current debt situation.